Online Outsourcing Research Articles

The impacts of live chat on service–product purchase: Evidence from a large online outsourcing platform

This study examines the impact of live chat on purchase decisions in the context of online outsourcing platforms. A theoretical research model based on signaling theory is proposed. The results of an econometric model based on a unique dataset from a large online outsourcing platform demonstrate that both affective signals (reflected by politeness and sentiment valence) and informative signals (reflected by information quantity and response timeliness) positively affect purchase decisions. In addition, these effects are found to be significantly influenced by consumers’ prior experience. Specifically, the findings show that consumers’ prior experience undermines the effect of politeness and sentiment valence on purchase decisions, but strengthens the effect of information quantity. In general, this study not only offers a comprehensive understanding of live chat in an outsourcing platform, but also yields insights into how live chat tools can be designed and used to promote online transactions.

Photovoice experiences in the Mediterranean and Western Balkan area, analysis of the drivers and barriers to a successful implementation

This paper regards photography and defines its social function as an enabler in expressing and communicating a community's needs, resources, desires and reporting events, focusing on photovoice projects. Photovoice is a qualitative action research method used in community-based participatory frameworks to promote the exploration of relevant topics and the surfacing of issues and resources. The topic exploration was conducted through desk research and online outsourcing of information. The research describes photovoice implementation processes in the Mediterranean and the Western Balkan region with various targets, mainly on climate change, and migration and wellbeing, where applicable. The study defines the barriers and drivers in the implementation of Photovoices initiatives, focusing on analysing the implementation processes of the most fitting projects collected, four from each selected macro area. Further, the research collects good and best practices to provide suggestions for future Photovoice initiatives and starting points to be explored and deepened in future research and analysis activities. Finally, the study assesses, where possible, the target groups and community level of engagement in the activity. After analysing the eight projects, the paper recommends the usage of Photovoice as a tool to tackle climate change, migration consequences and wellbeing, mental health and human rights topics, since it provides data as well as awareness, engagement, and empowerment.

Solution exemplars and sales performance arising in online outsourcing: the moderating role of expertise

PurposeService providers on highly competitive online outsourcing platforms employ various signals to entice buyers to make online purchases. One such signal—the solution exemplars—attracts attention through depictions of exemplary prior work completed by the service providers. Unfortunately, it is not known the extent to which solution exemplar characteristics affect sales performance nor is it clear how such signals perform in the presence of complementary signals such as service provider expertise. This paper explores these issues.Design/methodology/approachExtending signaling theory, the authors develop a model to explore the effects of solution exemplar characteristics (i.e. exemplar quantity, exemplar diversity and exemplar popularity) on sales performance under the moderating impact of service provider expertise. The authors test the model using proprietary data from ZBJ.com, a leading online outsourcing platform in China.FindingsExemplar quantity and exemplar popularity positively affect sales performance; exemplar diversity has no significant impact on sales performance and service provider expertise positively moderates the relationships between exemplar quantity, exemplar popularity and sales performance.Originality/valueThis work makes several significant contributions. First, the authors enrich the research on signals in online outsourcing by exploring the impact of solution exemplar characteristics on sales performance. Second, the authors analyze three solution exemplar characteristics: exemplar quantity, exemplar diversity and exemplar popularity. Third, this work shows that service provider expertise moderates the relationship between solution exemplar characteristics and sales performance. Important practical implications for both online outsourcing platforms and service providers are discussed.

The Screening Role of Design Parameters for Service Procurement Auctions in Online Service Outsourcing Platforms

This paper provides a novel theoretical angle and robust empirical evidence demonstrating that the auction duration and the item description length are two essential auction design parameters that can function as screening mechanisms for bidder quality on online service outsourcing platforms. These outsourcing platforms use buyer-determined reverse auctions to find service providers. Using data from a major online outsourcing platform, we examine the effects of the auction duration and the item description length on both bidder entry (i.e., the number of bids and bidder quality) and contract outcomes (i.e., whether a project is contracted and the buyer’s expected utility from the winning bid) based upon the project- and bidder-level analyses. We find that auctions with longer durations and item descriptions attract more bids, but they also attract disproportionately more low-quality bidders, creating a double whammy of higher evaluation costs and adverse selection for buyers. This, in turn, leads to less successful contracting as well as lower buyer utility. Our research highlights the screening role of the auction duration and item description length for buyers on online service outsourcing platforms: by shortening auction durations and item descriptions, buyers can expect higher quality bidders, increase contracting probability, and enhance utility.

Managing skill certification in online outsourcing platforms: A perspective of buyer-determined reverse auctions

In online outsourcing platforms where clients (buyers) can procure diverse services from freelancers (service providers), skill certification systems are usually offered for freelancers to signal their private service expertise. This study considers a multi-stage online outsourcing context where the freelancers may participate in skill certification before bidding for a client's service contract in a buyer-determined reverse auction. The paper examines the interactions of the freelancers' certification, bidding, and service effort decisions with the client's design and award of the outsourcing contract, and it highlights the impacts of the certification system on the transaction parties' decision results. Moreover, the paper also investigates the platform's adoption and optimization decisions towards the certification system. The results show that freelancers would participate in certification, if and only if their expertise exceeds a threshold that is decreasing in both the transaction efficiency (which decreases in the commission rates charged by the platform) and certification informativeness. The client should set a smaller project scope and a lower penalty for low-quality delivery when the certification informativeness is higher or the transaction efficiency is lower. Both the client and the freelancers are more likely to benefit from the certification system when the certification informativeness or transaction efficiency is higher, or when the certification cost is lower. For the platform, the certification system is valuable, and its value is increasing in the certification informativeness. The platform can optimize the commission rates such that the resulting transaction efficiency is decreasing in the certification informativeness and increasing in the certification cost.

Impact of SARS-CoV-2 Outbreak on Physical and Mental Health, Psychological Distress, and Suicidal Ideation, and the Mediating Role of Stressors

This study investigated the physical and psychological impacts of elements related to coronavirus disease (COVID-19) and demographic data in Japan both directly and as mediated by stressors, immediately following the rescinding of the state of emergency declaration accompanying the severe acute respiratory syndrome coronavirus 2 outbreak. An online survey was administered to 1,500 Japanese registered with an online outsourcing service. Data were analyzed with structural equation modeling using Mplus. Relatively large total effects were observed for “insufficient exercise” on physical health (β = –0.24, SE = 0.03), “mental health issues related to COVID-19” on mental health (β= –0.25, SE = 0.03) and psychological distress (β= 0.24, SE = 0.03), neuroticism on mental health (β= –0.30, SE = 0.02) and psychological distress (β= 0.36, SE = 0.02), and social support on suicidal ideation (β= –0.32, SE = 0.03). Thus, mitigating the harm resulting from the ongoing impact of the COVID-19 infection outbreak by raising awareness of risk factors and promoting social support is feasible.

Buyer preferences for auction pricing rules in online outsourcing markets: fixed price vs. open price

Fixed-price and open-price are two mechanisms with different auction pricing rules that are popularly used in online outsourcing markets. This research empirically examines the determinants of buyers’ choices between the two mechanisms with secondary data from an online outsourcing market. We found that buyers tend to use open-price auctions with large size projects, while their propensity to use fixed-price auctions increases when they are more familiar with the project, have more trading experience in the market, or less trust in the service providers. Moreover, buyer experience has significant moderating effects on the impact of project size and buyer distrust. Our empirical results reveal a unique insight that incomplete information and information asymmetry, rather than the expected buyer surplus, are critical factors to buyers’ preferences on bid dimensionality.

Digital Economy and Digital Labour Terminology: Making Sense of the 'Gig Economy', 'Online Labour', 'Crowd Work', 'Microwork', 'Platform Labour', Etc.

Confused about the gig economy vs. platform economy vs. on-demand economy? Befuddled by online labour vs. digital labour vs. platform labour? Bemused by microwork vs. crowdwork vs. digital work? Then read on. This paper analyses the myriad terminologies that have arisen in relation to the digital economy and digital labour. In detailed tables, it assesses the prevalence and currency within research literature of nearly 30 different terms. It then provides a definition for each and summarises the typical content of literature using the term. It also summarises current popularity of related Twitter hashtags. Taking the specific example of online outsourcing of digital tasks, the paper analyses which of the different terms is most appropriate as an identifier (concluding these to be “online labour”, “online outsourcing” and “gig economy” depending on focal interest), and presents a graphical summary. The review data provided can be re-used to identify the most-appropriate term for other labour-related topics in the digital economy.

Decent Work and the Digital Gig Economy: A Developing Country Perspective on Employment Impacts and Standards in Online Outsourcing, Crowdwork, Etc

This paper presents a review of current evidence and ideas relating to the digital gig economy (DGE): contingent (task- or project-based) intangible work delivered digitally and done for money, organised via online outsourcing platforms that are marketplaces bringing together buyers and sellers. Examples of such platforms include Freelancer, Upwork, Amazon Mechanical Turk and Zhubajie/Witmart. While the paper takes a particular interest in the perspective of workers in developing countries, most of its findings will apply globally, and many will apply to the broader gig/sharing/platform economy.

Understanding the Development Implications of Online Outsourcing: A Study of Digital Labour Platforms in Pakistan

Online outsourcing involves outsourcing of tasks from clients to workers all over the world via digital platforms like Upwork, Freelancer and Fiverr. Millions of workers in developing countries are already involved, and governments and donor agencies are starting online outsourcing initiatives that try to offer access to these digital livelihoods to marginalised groups such as unemployed youth and women. However, little is yet known about these initiatives and, to address that gap, the research reported here undertook case study analysis of online outsourcing projects in Pakistan. Supported by the sustainable livelihoods framework, the analysis showed a context of politico-economic vulnerability to push unemployed individuals into this field. Those involved then divided into four groups: sinkers, strugglers, survivors and swimmers. Many do not succeed but some – more entrepreneurial individuals pulled by the motivation of earnings potential – do, and are able to generate reasonable earnings; for example, enough to fund educational studies. Contrary to an image of de-institutionalised work, this form of digital labour involves a substantial institutional ecosystem. This means not just the online platforms but formal interventions from NGOs and other development agencies, and the creation of less formal social relations of support. These are needed in order to overcome barriers including technical infrastructure, knowledge and skills, and financial systems.

Using Internet-based marketplaces to conduct surveys: An application to airline itinerary choice models

Within the transportation community, there has been increasing interest in using online outsourcing platforms such as Amazon Mechanical Turk (AMT) to conduct surveys. To date, transportation researchers’ use of AMT has been justified based on findings from studies in other fields. That is, to the best of our knowledge, there has been no study that has evaluated how the distribution of responses associated with each question and behavioral model estimated from AMT survey data compares to survey data collected from a traditional platform for a travel behavior application. This paper fills an important gap in the literature by examining (1) whether the distributions of responses from AMT and Qualtrics (a traditional market research firm) respondents are statistically equivalent, and (2) whether itinerary choice models estimated from these two surveys are statistically equivalent? Results show that AMT and Qualtrics respondents reported similar air trip characteristics and were drawn from a similar geographic distribution, but they exhibited distinct sociodemographic characteristics. After controlling for different age distributions in the two datasets, we found that airline itinerary choice models estimated from the AMT and Qualtrics survey data produced similar results, with the key difference related to price sensitivities. Our study provides preliminary evidence on the viability of using AMT and similar online outsourcing platforms for air travel behavior studies.

Online outsourcing and the future of work

PurposeThe purpose of this paper is to provide an argument supporting the growth of online outsourcing, which will exponentially increase in the coming years with the spread of internet availability to the less-developed regions of the world. In addition, this paper stresses the role of human decision-making in fostering this growth, rather than promoting inhibitory policies because of nationalism or fear of change.Design/methodology/approachFirst, globalization and the three “waves” of outsourcing are discussed. Next, the economic principles guiding online outsourcing (disintermediation, the rise of global internet connectivity and the benefits of output-based pay over input-based pay) are discussed. After explaining how artificial intelligence will complement rather than replace human laborers, a case study and evidence are provided. Then, suggestions for government policies going forward, including skill development and education are provided. Finally, the debate that will inevitably emerge regarding online worker benefits is introduced.FindingsEvidence points toward the growth of online outsourcing and the resulting increased efficiency and gains through this type of trade. The increase in freelance workers and their earnings, the investments of Google and Facebook to develop internet capabilities in less-developed regions and the reducing costs of technology (such as laptops) provide support for this argument (Elance, 2013; Forbes, 2014; Pofeldt, 2015). Finally, a case study provides evidence illustrating how individuals may gain from these advances.Originality/valueThis paper contributes to the literature by providing a compelling argument for the upcoming transition to increased efficiency in work through online outsourcing. Technological advances will allow the modern worker to delegate his/her mundane tasks so that he/she is free to focus on more pressing issues. This shift will multiply the domestic and foreign labor markets, creating opportunities that have not been available to this point. As this transition is not inevitable, this paper further outlines suggestions for policymakers to ensure maximized gains in the future.

Awareness of and experience with online outsourcing journalism labor markets: A benchmark study of freelance journalists

Online outsourcing markets (OOMs), those sites that connect buyers and sellers of digital labor, have grown dramatically, attracting a global cadre of freelance workers. Journalism OOMs are beginning to have an impact on the buying and selling of freelance journalism. This paper is an exploration of early effects, reporting findings of a survey (n=453) of freelance journalists who use OOMs and those who don’t, or don’t yet. The paper reviews recent scholarship on OOMs and freelance journalists. Freelance journalists were asked about their awareness of and experience with journalism OOMs. Considering OOMs only recently started diffusing, analysis shows a relatively high level of awareness and use of OOMs, plus perceptions about their value for obtaining work, working conditions and monetary and intrinsic rewards.

A new twist on the gig economy: conducting surveys on Amazon Mechanical Turk

There is growing interest in using online outsourcing platforms that are part of the “gig economy” to conduct surveys for academic research. This interest has been driven in part by the belief that compared to traditional survey data collection methods, internet-based marketplaces such as Amazon Mechanical Turk (MTurk) enable one to collect survey data cheaper and faster from a larger, more diverse participant pool. However, many have questioned whether models based on survey data from these online marketplaces are similar to models based on survey data from more traditional platforms. To investigate this research question, we used MTurk and Qualtrics (a traditional market research firm) to survey air travelers. Our results showed that MTurk and Qualtrics respondents had distinct socio-demographic characteristics, but we found no statistical evidence for different air trip characteristics. In our data, proportionately more MTurk respondents were in the younger, single, male, and lower-income categories than for Qualtrics respondents. We found that airline itinerary choice models estimated from the MTurk and Qualtrics survey data were similar, with the key difference related to price sensitivities. Although our results provide evidence that MTurk can be used for travel demand modeling applications, we offer words of caution for others planning to conduct surveys in online marketplaces, particularly for those seeking to recruit more than 1000 participants or for those targeting specific geographic areas.

The Role of Auction Parameters in Online Outsourcing Platforms for Service Procurement

This paper provides a novel theoretical angle and robust empirical evidence that auction duration and description are two essential auction design parameters that can function as a screening mechanism for bidder quality in online service outsourcing platforms. These outsourcing platforms use buyer-determined reverse auctions to find providers of services (primarily IT services). Using data from a major online outsourcing platform that connects buyers with bidders, we examine the effects of auction duration and description on both bidder entry (i.e., number of bids and bidder quality) and contract outcomes (i.e., whether a project is contracted and buyer’s expected utility from the winning bid) based upon not only the project-level but also bidder-level analyses. Our results show that auctions with longer durations and descriptions attract more bids (i.e., higher quantity of bidders) but they also attract disproportionately more low-quality bidders with lower completion rates (i.e., lower quality of bidders), creating a double whammy of higher evaluation costs and adverse selection for buyers. This, in turn, leads to contracting inefficiency in terms of less successful contracting as well as lower buyer utility. Our research provides empirical evidence that auction duration and description can play a screening role for buyers on online outsourcing platforms for service procurement.

Fueling the Gig Economy: A Case Study Evaluation of Upwork.com

With recent downsizing of talented professionals and the power of globalization to provide opportunities for more underdeveloped countries, the gig economy is a source of influence in today�s generation of professionals. Online outsourcing media have shown to be valuable resources for companies who need a specific set of skills for a limited period. This case study evaluates Upwork.com, one of the leading freelance websites in the gig economy; this article provides insights on how others should evaluate the power of this new economy in terms of opportunities for small businesses, entrepreneurs, and freelancers. Upwork has led the pack by providing a flexible platform for freelancers worldwide, including coders, writers, and web developers, putting businesses in touch with reasonably priced workers. The study begins by exploring the attributes of the gig economy. Data collection is achieved through qualitative analysis. The application of these conclusions could increase the survival rate of new freelancers on Upwork.com and in the gig economy. The study is significant because this research widens contemporary assumptions about strategic thinking for individuals engaged in e-commerce.

On Buyer Selection of Service Providers in Online Outsourcing Platforms for IT Services

The Internet has presumably created a level playing field that allows any service provider across the globe to compete for contracts on online outsourcing platforms for information technology (IT) services. In this paper, we empirically examine (a) how country (language, time zone, cultural) differences and the country’s IT development affect buyers’ selection of service providers in online outsourcing platforms; and (b) how the reputation of service providers moderates the proposed effects of country differences and the country’s IT development. We integrated a unique data set formed by a sample of 11,541 software development projects from an online outsourcing platform matched with archival sources on the language, time zone, culture, and IT development of countries. Since price is typically endogenous in any supply demand system, we used the exogenous variation of the normalized exchange rate of the currency among countries, as a “cost-shifter” type instrumental variable (IV) for econometric identification. Our panel data analyses results (both with and without IV) show that buyers are negatively affected by country differences in terms of language, time zone, and culture, and prefer service providers from countries with higher IT development. Notably, the reputation of service providers attenuates the negative effects of language and cultural (but not time zone) differences, while it substitutes the positive effect of the country’s IT development. We discuss the study’s theoretical and managerial implications for understanding the global dynamics of online outsourcing platforms and better designing these platforms. The online appendix is available at https://doi.org/10.1287/isre.2017.0709 .

Knowledge Requirement Model for Online Outsourcing Tasks

Knowledge Requirement Model for Online Outsourcing Tasks

Exploring the Resource Nature of Online Sourcing Marketplace

Online sourcing marketplace is a new business model that provides business services to firms. Considering the resource nature of online sourcing marketplaces, we focus on and explore impacts of the resource-based attributes on trust. Thus, we look into a new kind of online marketplaces devoted to services. The research model is examined with the data collected from an online micro-sourcing marketplace. Our findings indicate the importance of institution-based trust in building effective online outsourcing marketplace. Moreover, trust in marketplace builds on its ability to supply resources and to facilitate the resource utilization process. Finally, implications for theory and practice are presented.

Research on the Mechanism of Trust in the Open Online Sourcing Marketplace

Open online sourcing is a new outsourcing model. With the development of the information economy, more and more enterprises begin to adopt the open online sourcing. It has great social and commercial value to establish an effective open online outsourcing marketplace, and the critical success factor of the operation is to establish the trust mechanism in this online marketplace. Thus, we construct a trust mechanism model in the open online outsourcing marketplace based on the Theory of Rational Action, and the four dimensions of the trust are identified in the model, they are trust intention, trading mechanism trust, trading process trust and quality of the online platform. This model can provide theoretical guidance in the operation of the open online sourcing marketplace.